Creating a Compassionate Workplace:

The Business Case for Mental Health Programs

“To win in the marketplace you must first win in the workplace”. 

– Doug Conant, founder and CEO of ConantLeadership, former president and CEO of Campbell’s Soup

In today's fast-paced and competitive work environment, mental health has become a critical issue that significantly affects employees and the overall workplace — and the problem isn’t going away or getting better. Issues such as stress, anxiety, depression, and burnout can have profound effects on employees' productivity, job satisfaction, and physical health. In fact, Lyra Health's 2024 State of Workforce Mental Health Report found that 65% of employees said their mental health made it difficult to do their work, a 35% increase from 2020. Seven percent said they have missed one day of work or more due to their mental health condition. 

The good news is that U.S. workers are gaining control over stress. While in 2022, 51% reported that stress was a top mental challenge, in 2023, that number was down to 40%. The not-so-good news is that more serious mental health issues are on the rise. Reports of self-harm, suicidal thoughts and intimate partner violence have all increased by at least 1.5%, while inpatient hospital stays for mental health issues have shot up 8%.

These findings reinforce just how important it is for business leaders to understand mental health issues and take proactive steps to both remove the stigma and offer support to employees to foster more positive, productive, and healthy work environments.

The Impact of Mental Health Issues on the Workplace

1. Reduced Productivity: Mental health issues can lead to decreased concentration, lower energy levels, and reduced cognitive function. Employees struggling with these issues may find it challenging to complete tasks efficiently, meet deadlines, or maintain the quality of their work.

2. Increased Absenteeism: Employees experiencing mental health problems are more likely to take sick leave. This not only affects their own productivity but also places additional strain on their colleagues who may need to cover their workload.

3. Higher Turnover Rates: Persistent mental health issues can lead to burnout, causing employees to leave their jobs in search of better environments. High turnover rates are costly for businesses due to the expenses associated with recruiting, hiring, and training new employees.

4. Decreased Employee Engagement: Employees suffering from mental health issues are often less engaged with their work and the organization. This can lead to a lack of motivation, lower morale, and a disconnect from the company's goals and values.

5. Negative Workplace Culture: When mental health issues are not addressed, it can create a toxic work environment. This can result in poor communication, conflicts among employees, and a general sense of dissatisfaction within the team.

How Employers Can Support Employee Mental Health

1. Promote a Healthy Work-Life Balance: Encourage employees to take regular breaks, use their vacation days, and establish boundaries between work and personal life. Flexible working hours and remote work options can also help employees manage their responsibilities more effectively.

2. Provide Access to Mental Health Resources: Offer resources such as Employee Assistance Programs (EAPs), which provide confidential counseling and support services. Ensure that employees are aware of these resources and know how to access them.

3. Foster an Open and Inclusive Culture: Create a workplace culture where mental health is openly discussed and destigmatized. Encourage leaders and managers to talk about mental health and share their own experiences to normalize these conversations.

4. Train Managers and Leaders: Provide training for managers and supervisors to help them recognize the signs of mental health issues and respond appropriately. Equip them with the skills to have supportive conversations and guide employees to the right resources.

5. Implement Wellness Programs: Develop programs that focus on physical and mental health. These can include fitness challenges, mindfulness sessions, stress management workshops, and access to mental health apps.

6. Ensure a Safe and Supportive Work Environment: Regularly assess the workplace for factors that may contribute to stress and take steps to mitigate them. This can include workload management, clear communication of job expectations, and providing the necessary tools and resources for employees to perform their tasks effectively.

7. Encourage Social Connections: Promote a sense of community and support within the workplace. Social activities, team-building exercises, and peer support groups can help employees build strong relationships and support networks.

Conclusion

Addressing mental health in the workplace is not just a moral imperative but also a strategic one. By fostering a supportive environment and providing the necessary resources, employers can help their employees thrive both personally and professionally. Fortunately, it is becoming more common to discuss mental health in the workplace, as the report found that 41% of employees say they feel comfortable discussing these issues with their managers, up 15% since 2020. This not only enhances individual well-being but also contributes to a more productive, engaged, and resilient workforce. Taking proactive steps to support mental health can lead to a happier, healthier, and more successful organization.

Is it time to talk? Learn how we approach mental health as a business problem. We can help implement the right employee benefits strategy and tactics toDivider help you foster a more compassionate workplace that supports business growth and your bottom line.

Nelson Griswold

Nelson Griswold is a NextGen Benefits Adviser.

As a NextGen Benefits Adviser, Nelson implements effective cost-containment solutions, from managing high-cost drugs to identifying high-quality physicians, from utilizing advantageous direct provider contracts to providing cost-effective virtual care programs.

With strategies and plan designs backed by one of the industry's most respected teams of subject matter experts, you can place your unwavering trust in Nelson.

With Nelson's proven expertise and established track record, you can achieve substantial cost savings compared to conventional, status quo health plans from insurance companies and brokers.

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